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Audit Buzz Newsletter
June 2025
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Engagement and Office Updates
In this issue of the Audit Buzz, we provide an update on current engagements, an article on Who Develops Framework for Checks and Balances, our celebration of the May Internal Audit Awareness Month, auditors at work, and a training opportunity. Audit Buzz will take a short break in the summer; and we will return in the fall!
Prior editions of Audit Buzz are archived here on Office of Auditor General (OAG) website.
As always, we appreciate the cooperation and courtesies extended to our staff by Fairfax County Public Schools (FCPS) management and staff during all past, current, and future audit engagements.
Here is a challenge to test your audit knowledge, before we begin this issue:
Say What You See
*Hint: Professional auditing standards are issued by this office.
Current Engagement Update
At the June 16 Audit Committee meeting, OAG presented the following agenda items:
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FY25 Construction and Renovation Contracting Process Audit - This audit includes one high risk finding, three moderate risk findings, and one observation in this audit. The high risk finding was related to compliance with construction and renovation contracting requirements. The three moderate risk findings were related to construction and renovation monitoring, updates to policies and guidelines, and key performance indicators and benchmarking. The observation noted considerations for contractor performance monitoring.
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FY25 Critical Process Review Hiring Audit - This audit includes three moderate risk findings and one low risk finding. The three moderate risks were related to streamlining the design of the hiring and onboarding processes, establishing formal goals and milestones for hiring tasks, and system data reliability. The low risk finding is related to the communication of principal hiring practices.
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FY25 Business Process Audit (BPA) Summary and BPA Reports for Centreville High, Forestdale Elementary, Hayfield Middle, Mason Crest Elementary, McLean High, Sandburg Middle, South County High, and Woodley Hills Elementary - These eight audits includes one high, three moderate risk and 20 low risk findings. These findings related to reconciliations, the purchasing process, sufficient documentation, and timely payment.
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Audit Follow-up - OAG presented the follow-up status of open audit recommendations as of April 30.
Knowledge Hive
Who Develops the Framework of Checks and Balances?
If you ever wonder who develops the framework to assess checks and balances, Committee of Sponsoring Organizations of the Treadway Commission (COSO) is the place to find out more!
This article explains how the COSO framework, while primarily associated with financial reporting, also provides valuable guidance in OAG’s audit reports, specifically surrounding checks and balances, in the auditor’s term – internal controls. COSO’s core principles of control, risk management, and monitoring are universally applicable to all organizational objectives, including those related to performance.
COSO's Five Integrated Components:
COSO emphasizes five interconnected components of internal control:
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Control Environment: Tone at the top, ethical values, and organizational culture regarding internal control.
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Risk Assessment: Identifying and analyzing potential risks that could prevent the achievement of objectives.
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Control Activities: The policies and procedures designed to mitigate those risks (e.g., approvals, reconciliations, segregation of duties).
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Information and Communication: How relevant information is captured and disseminated throughout the organization.
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Monitoring Activities: Ongoing evaluations to ensure controls are functioning as intended and that deficiencies are addressed.
OAG recently completed an audit of student discipline process. We utilized COSO framework to ensure the process meets standards for effectiveness, efficiency, and regulatory compliance:
Control Environment: this set the tone for the discipline process. An effective control environment fosters integrity, ethical values, and a commitment to fair and consistent discipline.
- Ethics and Integrity: Are there clear codes of conduct for students and staff? Is there a demonstrated commitment to ethical behavior in disciplinary matters?
- Commitment to Competence: Are staff involved in the discipline process adequately trained and qualified? Is there ongoing professional development?
- Organizational Structure: Is there a clear organizational structure with defined roles and responsibilities for handling student discipline?
Risk Assessment: this involves identifying and analyzing risks that could hinder the achievement of fair and consistent student discipline.
- Identify Risks: Consider potential risks such as:
- False accusations
- Inconsistent application of rules
- Inadequate documentation
- Bias in decision-making based on certain student groups
- Assess Risks: Evaluate the likelihood and impact of each risk.
Control Activities: these are the actions taken to mitigate identified risks and ensure the discipline process operates effectively.
- Policies and Procedures: Are there written policies and procedures that clearly outline the student discipline process, including due process rights, appeal procedures, and disciplinary actions?
- Authorization and Approvals: Are disciplinary actions appropriately authorized and approved? Are there clear levels of authority?
- Segregation of Duties: Where appropriate, are duties related to the discipline process segregated to prevent conflicts of interest and errors (e.g., investigation, decision-making, record-keeping)?
- Information Processing: Are student discipline records accurately and securely maintained? Is there a system for tracking disciplinary actions and identifying trends?
- Physical Controls: Are physical controls in place to protect sensitive student information related to disciplinary actions?
- Monitoring Controls: Are there mechanisms to monitor the effectiveness of the discipline process and identify areas for improvement (e.g., regular reviews of disciplinary data, student and parent surveys)?
Information and Communication: Effective communication is crucial for a fair and transparent discipline process.
- Internal Communication: Is information about the discipline process effectively communicated to students, staff, and parents?
- External Communication: Are there clear communication protocols for interacting with external parties, such as law enforcement or social services?
- Reporting: Are disciplinary data and trends regularly reported to relevant stakeholders, including the school board and administration?
Monitoring Activities: Ongoing monitoring is essential to ensure the discipline process remains effective and adapts to changing circumstances.
- Ongoing Evaluations: Regularly evaluate the effectiveness of the discipline process through data analysis, feedback from stakeholders, and internal audits.
- Separate Evaluations: Conduct periodic independent reviews or audits of the discipline process to provide an objective assessment.
- Remediation: Identify and implement corrective actions to address any deficiencies or weaknesses identified through monitoring activities.
OAG Recent Events
Internal Audit Awareness Month
On May 14, OAG celebrated Internal Audit Awareness month at the FCPS Gatehouse Administration Center. FCPS employees were able to learn more about the OAG. OAG was able to test FCPS employee's knowledge by asking questions and testing the employee's knowledge with trivia games.
 OAG Team with Andy Mueck
Thank you to all that joined OAG at our celebration for Internal Audit Awareness Month. Special thanks to our Chief Operating Officer, Andy Mueck, who stopped by and answered all the trivia questions.
Congratulations to all the raffle winners!
 A Happy Raffle Winner - Elicia Parks
Auditors at Work
 OAG auditors, Mounia Chehab and Tim Tishman, conducting a site visit
On March 27, OAG conducted a site visit at an elementary school to observe, inquire, examine, and inspect school's renovation projects. OAG performed an audit of the FCPS construction and renovation contracting process. OAG met with construction manager, Billy Lariscy and field representative, John Newbold of the Design and Construction (D&C) department, under the Chief of Facilities Services and Capital Programs. Both were very helpful in responding to OAG’s on-site inquiries and walkthroughs. OAG appreciate the time and effort that D&C put into making this site visit successful. Here is the link to the audit report: FY25 Construction and Renovation Contracting Process Audit
Did You Know?
OAG Outreach and Education: Continuing Professional Education (CPE) Opportunity
OAG is registered with the National Association of State Boards of Accountancy (NASBA) and serves as the sponsor for the FCPS Continuing Professional Education (CPE) programs, dedicated to support FCPS employees with complimentary CPE credits required by various certification agencies. OAG is pleased to offer a new NASBA training opportunity for FCPS employees to earn up to three CPE credits:
Course: The Pillars of Trust: Checks & Balances, Ethical Conduct, and Your Role
Date: July 18, 2025
Time: 9:00 AM - 12:00 PM
During this training, participants will learn from the industry leading internal controls frameworks and apply them at work. In addition, participants will be able to leveling-up the ethical intelligence. All FCPS employees should conduct themselves in a manner that promotes and supports good ethical decisions. We will highlight ethical intelligence and why it is important that all FCPS employees act in an ethical manner when facing difficult decisions.
FCPS employees may sign-up for the training on MyPDE.
Fraud, Waste & Abuse Hotline:
(571) 423-1333 (anonymous voicemail)
InternalAudit@fcps.edu (email is not anonymous)
Online Submission Form
[Answer: Government Accountability Office]
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